Match List I (Nature of deficit) with List II (How it is calculate) and select the correct answer using the codes given below the lists List I List II (a) Fiscal deficit 1. (Revenue and interest receipts) minus (Revenue expendiutre) (b) Revenue deficit 2. Rev enue receipts + Recovery of loans and other receipts) minus (Total expenditure) (c) Budgetary deficit 3. Receipts minus disbursements in Capital account (d) Capital deficit 4. (Total receipts)–(Total disbursements) Codes: (a) (b) (c) (d)

Public finance is the study of the role of the government in the economy. It is the branch of economics that assesses the government revenue and government expenditure of the public authorities and the adjustment of one or the other to achieve desirable effects and avoid undesirable ones.